Senate Study Bill 3102 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON WARNSTADT) A BILL FOR An Act relating to certain coverage provisions contained in 1 uninsured and underinsured motor vehicle insurance coverage. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5549XC (2) 83 av/nh

S.F. _____ Section 1. Section 516A.2, Code 2009, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 4. A policy to which this chapter applies 3 shall not include any type of step-down provision that operates 4 to reduce uninsured or underinsured motor vehicle coverage for 5 the reason that the person is injured by, or while occupying 6 a vehicle being operated by, a relative as defined in section 7 523I.102, or household member insured under the policy. This 8 chapter shall not be construed to prohibit an insurer from 9 including in the policy an antistacking provision based on 10 multiple policies or multiple vehicles, or both. If multiple 11 policies are applicable to a vehicle subject to an antistacking 12 provision, the maximum amount of recovery shall be the single 13 highest limit for that vehicle on any of the applicable 14 policies. 15 NEW SUBSECTION . 5. An insurer offering uninsured and 16 underinsured motor vehicle coverage as part of a coverage 17 proposal for motor vehicle insurance shall make available the 18 same limits of coverage that the insurer offers for bodily 19 injury liability coverage. However, the purchaser of the 20 uninsured and underinsured motor vehicle coverage is not 21 required to purchase those same limits of coverage. 22 EXPLANATION 23 This bill relates to uninsured and underinsured motor 24 vehicle insurance coverage. 25 Code section 516A.2 is amended to prohibit step-down 26 provisions in motor vehicle insurance policies that operate to 27 reduce uninsured or underinsured motor vehicle coverage because 28 a person is injured by, or while occupying a vehicle being 29 operated by, a relative as defined in Code section 523I.102 or 30 household member insured under the policy. The Code chapter 31 shall not be construed to prohibit an insurer from applying an 32 antistacking provision based on multiple policies or vehicles, 33 or both. If multiple policies are applicable to a vehicle 34 subject to the provision, the maximum amount of recovery is the 35 -1- LSB 5549XC (2) 83 av/nh 1/ 2

S.F. _____ single highest limit for that vehicle on any of the applicable 1 policies. 2 The bill also requires an insurer offering uninsured and 3 underinsured coverage as part of a coverage proposal for motor 4 vehicle insurance to make available the same limits of coverage 5 that the insurer offers for bodily injury liability coverage. 6 The purchaser of such coverage, however, is not required to 7 purchase those same limits of coverage. 8 -2- LSB 5549XC (2) 83 av/nh 2/ 2